FSN E-Commerce jumps 3% after reporting 100% QoQ increase in net profit

The share of this e-commerce company jumped up to 3 percent after the company’s net profit and revenue increased by 100 percent and 21 percent YoY, respectively in Q3FY25.

Price Action

With a market capitalization of Rs 48,546.85 crore, the shares of FSN E-Commerce Ventures Ltd were trading at Rs 169.75 per share, increasing around 0.09 percent as compared to the previous closing price of Rs 169.60 apiece.

Reason for Rise

The shares of the company have seen significant movement after FSN E-Commerce Ventures Ltd announced its financial performance in which revenue magnified by 27 percent on a

year-on-year basis from Rs 1,789 crore in Q3FY24 to Rs 2,267 crore in Q3FY25. However, on a Quarter-on-Quarter basis, revenue zoomed by 21 percent from Rs 1,875 crore in Q2FY25 to Rs 2,267 crore in Q3FY25.

Moreover, net profit jumped by 53 percent on a yearly basis from Rs 17 crore in Q3FY24 to Rs 26 crore in Q3FY25, meanwhile, on a quarter-on-quarter basis, net profit stretched by 100 percent from Rs 13 crore in Q2FY25 to Rs 26 crore in Q3FY25.

Brokerage Recommendation

Nuvama, one of the well-known brokerages in India, gave a ‘Buy’ call on the e-commerce stock with a target price of Rs 205 apiece, indicating a potential upside of 21 percent from  Tuesday’s price of Rs 170 per share.

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Brokerage rational

Brokerages are expecting, the company will improve in the second half of the current fiscal on the back of higher festive and wedding demand, additionally, Nuvama continues to forecast an improvement in profitability on the back of operative leverage, although we have moderated our expectations due to elevated marketing spends.

Moreover, the cosmetics and personal care sector in India is around Rs 1.1 lakh crore, with just 8% of it coming from e-commerce. Even after correcting Nykaa’s particular categories, the core online addressable market (TAM) is estimated to reach Rs 25,000 crore by FY26, a threefold increase. 

Business Update

FSN E-Commerce Ventures Ltd reported key Q3FY25 highlights: $530M+ GMV, ~40M cumulative customers (29% YoY growth), and 221 beauty stores, with 12 new openings. 70% of beauty orders in the top 110 cities are delivered within a day. Launched 200+ beauty and 270+ fashion brands, reaching 1B+ users.

Company Profile

FSN E-commerce Ventures Ltd. (FSNEV), sometimes known as “Nykaa”, is a digitally native consumer technology platform that provides customers with a content-led, lifestyle retail experience. The company’s range of beauty, personal care, and fashion items is wide, and it also manufactures its own brand products.

Written by Abhishek Singh

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